Kmpec
7.9K posts

Kmpec
@K_mpec80
Just a random guy, interested in the future of technology and mankind

Update on KelpDAO rsETH: Funds were indeed stolen and not minted. The attack is consistent with a failure in a single-DVN verification setup (@LayerZero_Core), releasing pre-funded rsETH on the destination chain (Ethereum), without any source side (Unichain) debit. Rather than dumping >$200M of rsETH into thin liquidity, the attacker deposited into Aave to borrow WETH, avoiding slippage and extracting immediate WETH liquidity. My original post assumed that these positions were backed. Now we know that collateral did exist on Ethereum and was accepted by Aave, but given the funds were drawn from the bridge’s pre-funded inventory and now KelpDAO has paused withdrawals, my original assumption breaks. If rsETH can’t clear at par, there’s bad debt risk. So, the question now remains: who takes the loss? Aave? (Bad debt) rsETH holders? If Aave ends up with bad debt, this becomes a real stress test for Umbrella. Waiting on Aave, Kelp, and/or LZ comms.





























We are alarmed by reports that Germany is on the verge of a catastrophic about-face, reversing its longstanding and principled opposition to the EU’s Chat Control proposal which, if passed, could spell the end of the right to privacy in Europe. signal.org/blog/pdfs/germ…






